TBG6 Architecture, Engineering and Construction
This specification provides the definition of the Project cost reporting message (PROCST) to be used in Electronic Data Interchange (EDI) between trading partners involved in administration, commerce and transport.
1.1 Functional definition
The Project cost reporting message is used in various industry sectors when there is a requirement for all parties involved in a project to formally establish and exchange budget baseline, actual, progress, and estimate to complete cost information; technical performance measurement information; and related funding information. This information exchange is typically going from a contractor performing the work to the end customer.
The purpose of this information exchange is to provide the end customer with data that describes the work that must be completed, who is doing the work, and establishes the cost budget baseline for the project. This information exchange also provides data that describes how the work is progressing against the cost baseline to determine if the project will complete on time and within budget. The work in process measurement data provides key management information to ensure the project is progressing as planned and highlights any problem areas that need correcting. Technical performance measurement data is used to determine if the project is meeting specific design or functional objectives. Periodic funding data reporting is used to track future funding requirements for the work in process.
1.2 Field of application
The Project cost reporting message may be used for both national and international applications. It is based on universal practice related to administration, commerce and transport, and is not dependent on the type of business or industry.
The industry sectors that typically exchange project cost information include construction, aerospace, aircraft, defense, and software or support services. Various government entities such as transportation, energy, space, and defense exchange project cost information with their contractors related to construction, software development, research and development, and production. For these various government entities, this project cost information is typically part of the contractual requirements for the preparation, status, and completion of a project, particularly for departments or ministries of defense for weapon system acquisition.
Although various regional and international differences do exist in the business terms used for project cost reporting, the underlying business requirements are similar. Various ministries of defense around the world have formed an international performance measurement council that has established similar policy and principles for project cost performance measurement and reporting. These international policies and principles are the underlying foundation for the data content in the Project cost reporting message.
This message is designed to convey budget, actual, earned value, and estimate to complete cost data; technical performance measurement data; and related funding data about a project in a neutral data format.
This information exchange provides data on how work is progressing against the original plan or budget baseline as well as specific design or functional objectives and to provide funding status related to the project. This progress information provides key management information needed to verify that work is progressing as planned, that work will complete on time and within budget, and meet project objectives. Progress payments can also be tied to the amount of work the contractor completes on the project; this reporting information can serve as the basis for these progress payments.
This message can be used to exchange project cost information between commercial off the shelf or company unique program management software applications. Typically this data exchange is external to a company. This data is exchanged with a company's customers which could be a government entity, another contractor, or with one or more teaming partner doing work on a project.
Data exchanged in the PROCST message can also relate to information conveyed in the Project Tasks Planning (PROTAP) message which provides more information about the tasks to be performed, who is doing the work, and when it will be done.
This PROCST message provides the related cost data (budget, actual, earned value, estimate to complete and related funding requirements) and any related technical performance measurements for the work activities required to complete a project. Many times the work schedule, the focus of the PROTAP message, provides the foundation to build the cost budget baseline. This cost budget baseline serves as the foundation to measure how work is progressing against the plan (actual and earned value costs) and to develop the estimate to complete costs and related completion dates.
This message does use externally maintained code lists for such details related to the contract type, program type, security references, appropriation, and funding notations. An external code list is also used to note the specific reporting formats as required by the various ministries of defense or other government agencies.
This message was designed to convey high level, general information about a project and related reporting structure detail.
The header section of this message is designed to convey project attributes such as contract and program type, references, descriptions, related documents, total contract monetary and percent details, end item deliverable details (how many and what is being delivered to the end customer), and contractor contact information.
The detail section of this message is designed to convey information at three levels of detail. The highest level of detail is the report level. For example, the cost performance data may need to be conveyed using different reporting structures, focus on baseline changes, or forecast labor requirements. Line item information is used to indicate what report format is being conveyed. In addition, for a given report, a segment group is included in the detail section to describe out-year time frames when reporting data needs to be compressed for a project that spans many years.
Within a report, the detail is further broken down by specific reporting structure elements. This is the second level of detail. This is where the budget, actual, earned value, estimate, and where needed, technical performance measurement and funding data is provided by specific reporting element references.
Within a reporting structure, depending on contract requirements, the reporting structure information may need to be broken down by cost elements such as labor or material detail or more specific detail such as engineering labor. This is the third level of detail. When the third level of detail is used, generally, the budget, actual, earned value, and estimate detail data is included at this level instead of at level two (reporting structure only). However, the two levels can be combined to provide summary reporting structure cost data and detail cost element cost data.
Typically the data sent is status information (weekly, monthly, or quarterly). The data will generally be used to update an application with new periodic data. In the event a contractor needs to retransmit a report, the receiving application or receiving party's business environment will dictate how the new data is managed. In some instances, the contractor may need to replan their project. In that event, it may be necessary to transmit new baseline data. Again, the receiving application or receiving party's business environment will dictate how the new data is managed.
Multiple Report Formats
This message has been designed to indicate the general category of cost data at the header level with the ability to indicate the various report formats at the detail level. This structure allows the message to contain one or more report formats for a given cost report category. This also allows the contractor to submit some of the required formats at one time and others at a later time, as needed.
See UNTDID, Part 4, Chapter 2.3 UN/ECE UNSM - General Introduction, Section 1.
3. TERMS AND DEFINITIONS
3.1 Standard terms and definitions
See UNTDID, Part 4, Chapter 2.3 UN/ECE UNSM - General Introduction, Section 2.
3.2 Message terms and definitions
Earned value represents a fundamental data component for cost performance reporting purposes. It provides the foundation to determine if work is progressing as planned.
Earned value costs identify how much work has been completed for the money spent. When earned value costs are compared to the budget baseline costs, it provides an objective measure to determine how much work was actually accomplished or the schedule variance (ahead or behind) in cost terms. When earned value costs are compared to the actual costs spent on the work completed, it provides an objective measure to determine how much it cost to complete the work or the cost variance (over or under). These cost and schedule indicators highlight problem areas in a project and provides objective, statistical measures to determine if a project will complete on time and within budget.
Reporting structures represent the various coding structures used to identify work being done a project. They serve as the foundation to plan, manage, and measure work completed.
Generally, the reporting structures include a Work Breakdown Structure (what) and an Organizational Breakdown Structure (who) or a combination of the two such as integrated process teams. The reporting structure coding scheme may be significant or non-significant in nature.
A reporting structure that is significant in nature indicates that the next higher level in the reporting structure tree can be determined by dropping one or more characters from the end of the structure code.
A reporting structure that is non-significant in nature indicates that the reporting structure uses a unique scheme of coding at each level. The next higher level code in the reporting structure tree cannot be determined by dropping one or more characters from the end of the structure code.
TECHNICAL PERFORMANCE MEASUREMENT:
Technical performance measurements are used to quantify specific design or functional objectives that a project must meet to satisfy contract requirements. This can include such statistical measurements as speed, range, reliability factors, or other quantifiable product or process metrics. Technical performance measurements also provide an early warning about the adequacy of a design to satisfy critical technical requirements of an end product.
Many contracts that will use the PROCST message to exchange project cost information between a contractor and their customer span many years. For a large production type of contract, it can span 10, 20, or more years. For reporting purposes, many times the cost data for future years are lumped into specific period based groups such as quarters, semi- annual, annual, or remainder of contract. These future year period based groups are the out-year categories for the contract. As the contract progresses, the future year period groups are broken down into more detail to provide visibility into past, current, and near-term effort, typically into monthly reporting periods.
4. MESSAGE DEFINITION
4.1 Data segment clarification
This section should be read in conjunction with the segment table which indicates mandatory, conditional and repeating requirements.
The header section for this message includes project unique identifying details, general project information, details about the parties exchanging data, and any related external files.
Information in the header section applies to the entire message.
The detail section for this message includes the report format and reporting element cost, technical performance measurement, and funding data. The detail section is structured into three levels of detail. The highest level of detail is the report format and any associated out-year data compression details.
The second level of detail is the reporting structure element.
This reporting structure element can be further broken down into a third level of detail, the cost elements. Budget, earned value, actual, estimate to complete data, and technical performance measurement data can be conveyed at the reporting structure element level (level two), at the cost element level within a reporting structure element (level three), or both.
The summary section provides an optional control total segment for checking purposes.